The more that China holds in foreign currency, mainly USD, the more that it can do RMB to USD conversions, which means the more RMB that it can print locally.

The more that China holds in foreign currency, mainly USD, the more that it can do RMB to USD conversions, which means the more RMB that it can print locally. The tie to RMB is critical for the Chinese economy because of its dependence on foreign investment